Tyson Foods Inc (TSN)
Inventory turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 49,682,000 | 50,250,000 | 46,614,000 | 40,523,000 | 37,801,000 |
| Inventory | US$ in thousands | 5,195,000 | 5,328,000 | 5,514,000 | 4,382,000 | 3,859,000 |
| Inventory turnover | 9.56 | 9.43 | 8.45 | 9.25 | 9.80 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $49,682,000K ÷ $5,195,000K
= 9.56
The inventory turnover ratio measures how efficiently Tyson Foods Inc manages its inventory by showing how many times the company's inventory is sold and replaced within a specific period. A higher inventory turnover ratio indicates that the company is selling its inventory quickly and efficiently.
From the data provided, we observe a consistent trend of inventory turnover ratios over the past five years. The inventory turnover ratios for Tyson Foods Inc were 9.56 in 2024, 9.43 in 2023, 8.45 in 2022, 9.25 in 2021, and 9.80 in 2020.
The trend indicates that Tyson Foods Inc has generally maintained a healthy level of inventory turnover over the years, with values consistently above 8 times. A higher inventory turnover ratio means that the company is able to replenish and sell its inventory faster, minimizing the risk of holding excessive and potentially obsolete inventory.
Overall, the data suggests that Tyson Foods Inc has effectively managed its inventory turnover, demonstrating efficiency in its inventory management processes. This can lead to lower holding costs, reduced risk of inventory obsolescence, and ultimately, improved financial performance.
Peer comparison
Sep 30, 2024